WTI clings to gains around $43, extends daily winning streak to four

Crude oil started the new week on a firm footing supported by positive developments surrounding coronavirus vaccine candidates. The barrel of West Tex  |  23/11/2020 18:37
  • Crude oil prices continue to push higher on coroanvirus vaccine optimism.
  • Upbeat PMI data from US provide a boost to risk sentiment. 

Crude oil started the new week on a firm footing supported by positive developments surrounding coronavirus vaccine candidates. The barrel of West Texas Intermediate (WTI) rose to its highest level since September 1st at $43.35 on Monday and has gone into a consolidation phase. As of writing, the WTI was up 1.2% on the day at $42.95.

Demand-side dynamics lift oil prices

After Pfizer and Moderna, AstraZeneca announced results for its COVID-19 vaccine candidate. The company said the vaccine it has been developing with the University of Oxford registered an average efficacy of 70.4% with one dosing regime reaching as high as 90%.

This headline kept hopes for a steady recovery in the global energy demand high and allowed the WTI to preserve its bullish momentum. Meanwhile, investors remain optimistic about OPEC+ agreeing on a three-month extension to output cuts when the group meets on November 30th and December 1st.

Meanwhile, the data published by the IHS Markit showed that the Manufacturing PMI and the Services PMI both continued to improve in November and provided a boost to risk sentiment. The ongoing expansion in the private sector's economic activity is also pointing out to a rebound in oil consumption in the US.

Technical levels to watch for

 

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